WASHINGTON, D.C. – The U.S. Commodity Futures Trading Commission
(CFTC) announced today the filing of an administrative action against
Joseph Defrancesco of Long Beach, New York; Brian Thornton,
also of Long Beach; RonaldKilbride of Morganville, New
Jersey; and Marc Greenstein of East Hills, New York, all of whom are
CFTC-registered floor brokers. The CFTC complaint alleges that, from
February 2000 through November 2000, the respondents unlawfully executed
coffee futures trades on the Coffee, Sugar & Cocoa Exchange (CSCE), a
division of the New York Board of Trade.

Specifically, according to the complaint,
Defrancesco and Kilbride fraudulently executed trades in the coffee futures ring of the CSCE, by
knowingly or recklessly trading ahead of executable customer orders on the
same side of the market and allocating trades to their personal accounts at
better prices than those received by their customers. Defrancesco, Kilbride,
and Thornton indirectly bucketed their customer orders by noncompetitively
trading for their own accounts indirectly opposite their customer orders,
the complaint also alleges. By engaging in noncompetitive trading, the
complaint alleges, Defrancesco, Kilbride, and Thornton also reported prices
on their trading cards to their customers and to the CSCE that were not
bona fide. The complaint further charges that Defrancesco,
Greenstein, Kilbride, and Thornton traded noncompetitively and entered into
illegal wash sales and accommodation trades by assisting Defrancesco or
Kilbride in taking the opposite side of their customers’ orders.
Defrancesco and Kilbride also failed to record required trading information
on their trading cards, according to the complaint.

A public hearing has been ordered to determine whether the allegations are
true and, if so, what sanctions are appropriate and in the public interest.
Possible sanctions include a cease and desist order, restitution to
defrauded customers, civil monetary penalties, trading prohibitions, and
registration revocations, suspensions or restrictions.

The following CFTC Division of Enforcement staff are responsible for the
case: Richard Wagner, John Dunfee, Jason Gizzarelli, Elizabeth Hastings, and
Margaret Kanyan.